¶1. (S) SUMMARY: In February 26 and 27 meetings with NEAAssistant Secretary C. David Welch, President AbdelazizBouteflika and Prime Minister Abdelaziz Belkhadem emphasizedtheir familiar line on self-determination for Western Sahara,as well as the need to find a way out that would allowAlgeria to "save face." Bouteflika said that relations withMorocco were "brotherly" and that Western Sahara was the onlyissue standing between them. Because the U.S. was unburdenedby the colonial past of France in the region, Bouteflika feltit was ideally placed to serve as an informal referee inresolving the dispute. Although he said he understoodMorocco felt threatened by the prospect of Western Saharanindependence, Bouteflika said that Morocco only had itself toblame for the current situation, as it had proceeded in a"clumsy" manner. With a more "elegant" touch, he said,Morocco could have encouraged "a Puerto Rico" outcome, whereSahrawis would happily choose to remain a part of Morocco insome form. Welch underlined to the Algerian officials thatthe U.S. sought a practical approach that could help thecurrent negotiations make progress, and the Moroccan autonomyproposal offered such a possibility. END SUMMARY.

LOVE FOR BAKER PLAN DIES HARD-----------------------------

¶2. (S) In response to A/S Welch's assertion that the Moroccanplan served to move a frozen situation forward in the absenceof any alternative, Bouteflika asserted that the plan offormer Secretary of State James Baker was such analternative. He told A/S Welch that if another option wasnecessary, "self-determination is that alternative" and theBaker Plan should be discussed. A/S Welch replied that theBaker plan is dead because it, too, failed to generateprogress. In Bouteflika's view, Baker failed because it wasnot given a chance, and he blamed the U.S. for "not takingits UN Security Council responsibilities seriously."Bouteflika said the Moroccan plan offered less autonomy forWestern Sahara than an Algerian province currently enjoys(reftel). He conceded that Algeria does have influence inWestern Sahara, but swore he would not use it to violate whathe sees as international law.

MOROCCAN "CLUMSINESS" TO BLAME------------------------------

¶3. (S) Prime Minister Abdelaziz Belkhadem told A/S Welch onFebruary 26 that the stability of Morocco was in Algeria'sinterest, and that attempting "to transform an anti-colonialissue" was not the right path to take and was potentiallydestabilizing to the region. Bouteflika, meanwhile, saidthat he understood Morocco felt threatened by the prospect ofindependence for Western Sahara, but stressed that theMoroccans only had themselves to blame for current Sahrawidetermination. Bouteflika explained, saying that Moroccocould have easily used a more "elegant" approach to produce aWestern Sahara independence that could be controlled orsupervised. Instead, he said, "they want Anschluss likeSaddam Hussein with Kuwait." Bouteflika said he easily couldhave imagined an outcome in which Western Sahara chose toremain a part of Morocco after seeing the benefits ofMoroccan rule, in much the same way "as Puerto Rico chose toremain part of the U.S." According to Bouteflika, Morocconeeds to offer the Polisario something, since "you cannot askconcessions from people who have nothing in their pockets."Had it not been for Morocco's "clumsy" approach, Bouteflikasaid "they could have gotten what they wanted."

ON FRANCE AND U.S.------------------

¶4. (S) Burdened by its colonial history in the Maghreb,France is unable to play a constructive role in resolving theWestern Sahara dispute, according to Bouteflika. France "hasnever really accepted Algerian independence," Bouteflikasaid, and he claimed that France was trying to settle scoreswith Algeria by interfering in Western Sahara in support ofMorocco. In contrast, Bouteflika said the U.S. was an idealcounterweight to balance Morocco, as none of the parties

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involved had any bone of contention with the U.S. Bouteflikacomplained that the U.S. treats Algeria as "second class"compared to the preferential treatment it gives to Tunisiaand Morocco. He said the U.S. should understand Algeriabetter, as "you also paid a price for your independence."Belkhadem told A/S Welch of Algeria's admiration for U.S.positions on the independence of East Timor and Kosovo. "Whydon't you share the same views on Western Sahara?" askedBelkhadem, "it leaves us wondering what our U.S. friendswant." With both Algerians, A/S Welch underlined that theU.S. sought practical approaches that would advance theWestern Sahara negotiations forward. The Moroccan proposal,he noted, offered a possibility. He urged the Algerians toconsider what they could do to help the current negotiationsmake concrete progress.

COMMENT: NEED TO SAVE FACE--------------------------

¶5. (S) Bouteflika repeated to A/S Welch several times theneed for Algeria to get itself out of the Western Saharadispute in a way that allowed it to "save face." Hereiterated that Algeria "has no claim" at stake, and spoke oflooking towards positive future relations with Morocco, as"one day we will need to get beyond this." In a February 27meeting with Foreign Minister Mourad Medelci, A/S Welchinvited the Algerian delegation to visit Washingtonimmediately following the next round of negotiations atManhasset, to continue the discussions.